TRENDS IN DISPUTE RESOLUTION MECHANISM; EXPLORING INSTITUTIONAL AND REGULATORY FRAMEWORKS FOR ADR IN THE NIGERIAN ENERGY

Abstract

The optimal exploitation of energy potential in Nigeria is largely determined by an efficient dispute resolution mechanism. This paper examines the regulatory and institutional frameworks on dispute resolution mechanisms and their potential impact on the Nigerian energy economy. The paper adopts a qualitative research approach, relying on both primary and secondary data. Relevant statutes, such as the Petroleum Industry Act and others, are examined. The paper finds that the PIA and EA serve as the regulatory frameworks for energy governance, with provisions on dispute resolution mechanisms that favor Alternative Dispute Resolution (ADR). The establishment of ADR Centres by the Nigerian Upstream Regulatory Commission and the enactment of ADR Regulations for resolving midstream and downstream disputes indicate the growing dominance of ADR in managing petroleum sector disputes. Similarly, the utilization of ADR mechanisms by the Nigerian Electricity Regulatory Commission in resolving electricity disputes further attests to the increasing role of ADR in energy conflict resolution. The paper recommends the establishment of a national Energy ADR Centre in Nigeria. This specialized energy court would entrench a court-connected ADR system, fostering a resilient energy dispute resolution mechanism as a precursor to robust investment and sustainable economic development in Nigeria.